Volatility Expected in Bitcoin Later Today as US Headline Inflation Data Is Expected to Tick Higher
The U.S. inflation report, set for release, may trigger bitcoin price volatility after a calm period. Following Donald Trump's election win on November 6, the total cryptocurrency market fluctuated from $2.2 trillion to $3 trillion, settling around $2.8 trillion. Bitcoin reached $90,000 on November 12. The U.S. consumer price index (CPI) is projected to show a 2.6% year-on-year increase for October, up from 2.4% in September, marking the first annual rise since March. Core inflation has also increased, posing challenges for the Federal Reserve. U.S. yields have risen since the Fed began rate cuts, with the 10-year yield climbing from 3.6% to 4.4%. Implied volatility for bitcoin options has surged from 40% to 90%. Historical data shows that inflation reports have previously caused significant price swings in bitcoin, with potential for similar movements following the upcoming report.
